What Is Cardano And How Does It Work?
Cardano is one of the most popular forms of cryptocurrency, a kind of digital currency that exists exclusively online. Cardano was founded in 2015 and began trading publicly in October 2017 at the price of a few cents per coin. As of January 2022, the coin trades for more than $1.20, though it had peaked above $3 in the prior 52 weeks. It’s among the 10 largest cryptocurrencies by total value, according to CoinMarketCap.com.
Here’s what Cardano is and what you need to know about it.
What is Cardano?
Cardano is one of the most popular cryptocurrencies in a market of more than 10,000 crypto coins. The cryptocurrency is called Cardano, while the individual unit is called ada.
Cardano was created by Charles Hoskinson, a co-founder of Ethereum, another popular cryptocurrency, and it runs on a decentralized public ledger using blockchain technology. Blockchain manages and tracks the cryptocurrency, recording and ordering every transaction that occurs using it, like an endless receipt.
This decentralized system validates transactions, verifies their integrity, and helps to ensure that the system as a whole is robust and error-free. Cardano uses what’s called a “proof-of-stake” system, in which owners of the currency are tasked with validating transactions in exchange for a reward. This “staking” reward can be an attractive way to earn income, and the best crypto brokers let you participate in staking with little or no cost.
Like many other crypto coins, it’s useful to think of Cardano as a token that enables you to power or enable apps. Sending money is just one aspect of what Cardano and many other crypto coins allow you to do.
What does Cardano do?
Cardano enables several different features on its platform:
- Currency: With a cryptocurrency wallet, you can send and receive Cardano or transfer it in exchange for goods and services.
- Smart contracts: Cardano enables smart contracts, which are contracts that automatically self-execute when the contract’s conditions are fulfilled.
- Decentralized finance: Cardano enables people to skip the middleman, such as banks and other financial institutions, to transact directly and on a permission-less basis with other individuals or entities.
- Digital apps: As part of decentralized finance, Cardano can enable lending, trading, asset management, insurance and other typical financial services.
So it’s useful to think of Cardano as a token that powers various financial services rather than merely as currency, though that is one of its functions, too.
Where do Cardano coins come from?
As of January 2022, there were about 33.5 billion ada in circulation, according to CoinMarketCap. The total supply is capped at 45 billion coins.
The fixed supply makes Cardano like Bitcoin, where the supply is limited to 21 million coins. And it’s in contrast to Ethereum, where the supply is unlimited, but the annual issuance is limited. Another popular cryptocurrency, Dogecoin, has an unlimited total supply.
Cardano’s proof of stake system allows those who own the cryptocurrency – those who have an interest in maintaining the integrity of the system – to validate transactions on the blockchain. These validators earn rewards (in the form of the crypto coin) for operating the system. However, if validators approve incorrect transactions, stakers can lose money.
And as an owner of the cryptocurrency, you can stake your coins with a validator and earn a proportional reward, though often with a fee for the service.
Is Cardano a good investment?
Like many cryptocurrencies, the price of Cardano has been very volatile. While it’s down from its recent highs, as are many other crypto coins, Cardano has still likely made many who have stuck with it significant money, especially if they bought and held from its debut in 2017. Instead of looking at recent gains or losses, it’s important to understand exactly what you’re buying.
From that angle, Cardano is not backed by any assets or cash flow of an underlying business, a key distinction between almost all cryptocurrencies and stocks. A stock is a fractional ownership stake in a company, so if that company grows over time, the stock will likely appreciate, too. Shareholders literally own the equity stake in that business, and they have a legal claim on its assets and cash flow. The stock may also pay a cash dividend to its shareholders.
In contrast, traders in Cardano have no such claims or backstops for their investment. Cardano rises and falls as the optimism of traders waxes and wanes. What propels cryptocurrencies such as Cardano is sentiment, speculation and the optimism of other traders, not the success of an underlying business. Traders figure they can sell the coin later to someone else for a higher price, or what’s called the “greater fool theory of investing.”
Often in such cases, the market finally runs out of ever more optimistic traders and the price crashes as speculators run for the hills. This setup – the lack of a growing, cash-generating company underlying the investment is what keeps many high-profile investors, such as the legendary Warren Buffett, from investing in cryptocurrency.
If you think cryptocurrencies are the next big wave, you could invest in them, but you have other ways to play them rather than invest directly in the tokens. For example, you can invest in companies that profit from blockchain technology and ride the wave that way.
If you’re committed to trade Cardano or other cryptocurrencies, though, it’s vital to expect volatility. And you could potentially lose your whole investment, if you’re buying an asset that’s not backed by anything. So don’t put in any money that you can’t afford to lose.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
PrivaCrip to Power a Blockchain Network That Could Follow Cardano & XRP
When the first decentralised blockchain was popularised in 2008 by Satoshi Nakamoto, the door was open for people across the globe to transact more securely and seamlessly. Many blockchain networks have been built and powered by native crypto tokens, including PrivaCrip (PRCR).
Native tokens exist for several reasons. Aside from acting as digital currencies, they perform various functions. Helping blockchains improve data traceability, security, transparency, and trustworthiness shared throughout the network. They also assist in reducing costs through their ever-evolving efficient methods.
Cardano (ADA) and Ripple (XRP) are among the best blockchain-based cryptos that this article will discuss. We will also look at how PrivaCrip (PRCR) will power a blockchain network set to launch into the crypto space.
Top Tier Crypto Makes its Mark – Cardano (ADA)
Cardano (ADA) has been around in the crypto space since 2017. The Proof-of-Stake (PoS), Ouroborous Cardano (ADA), was established using a research-based methodology.
Research is the backbone of Cardano (ADA) and is integral to its success in the cryptocurrency market. Cardano (ADA) uses an evidence-driven mechanism and peer-reviewed research to run its ecosystem to drive its evolution.
Among many things, Cardano (ADA) helps establish DeFi products and provides a suite of financial solutions. Crypto enthusiasts can stake Cardano (ADA) for a chance to earn rewards for their holdings.
With 2022 providing challenges in cryptocurrencies across the globe, Cardano (ADA) is one of the few cryptos to see a surge in on-chain trading volume this year. CoinMarketCap lists Cardano (ADA) as the 7th largest crypto by market capitalization at the time of writing.
Making Waves – Ripple (XRP)
Launched in 2012, Ripple (XRP) is a leading provider of crypto solutions for businesses. Ripple (XRP) provides developers with a solid open-source foundation for executing demanding projects. It is fast, energy-efficient, cost-effective, and reliable.
The solutions provided by Ripple (XRP) enable developers to solve inefficiencies, including asset tokenization and remittance. Therefore, individuals and businesses may apply Ripple (XRP) for DeFi, payments, tokenization, and more.
Crypto enthusiasts with a long-term focus may find Ripple (XRP) a valuable investing tool. Token holders can use Ripple (XRP) for staking its mainnet platform for a chance to grow their earnings and maximise profit.
At the time of writing, it ranks number 6 on CoinMarketCap, making it a cryptocurrency to buy now.
The New Face Of Privacy – PrivaCrip (PRCR)
The soon-to-launch PrivaCrip (PRCR) is a cryptocurrency built for Web3 data privacy. It will allow users to develop and use permissionless and privacy-preserving applications. This unique feature of PrivaCrip (PRCR) secures apps, protects users, and fosters the creation of many new Web3 uses.
PrivaCrip (PRCR) will drive a blockchain that creates a more empowering and inclusive internet. It will enable developers to build secure dApps using private contracts based on original privacy research (OPR) to revolutionise Web3.
PrivaCrip (PRCR) will begin pre-sale soon and has an initial token price of 0.10 USD. According to the whitepaper, there will be a total supply of 190 million tokens, of which 40% of the total supply will go to the pre-sale.
Crypto enthusiasts who purchase PrivaCrip (PRCR) during the pre-sale will receive the most significant long-term rewards and bonuses. Those who buy with Bitcoin (BTC) will receive a 10% bonus. Also, those using Ethereum (ETH) to purchase will receive 15% of the total PrivaCrip (PRCR) they purchase as a bonus.
10% of PrivaCrip’s (PRCR) total supply is up for distribution as staking rewards, meaning that token holders who stake will receive rewards for their contribution to the crypto’s advancement.
Blockchain networks are continuously evolving, and so are the crypto tokens that power them. Cardano (ADA) and Ripple (XRP) have contributed tremendously to the success of their blockchain networks, gathering mass appeal.
PrivaCrip (PRCR), for its part, will drive a security-enabled blockchain and scalability in private DeFi, empower data tokenization, and bring together a fast-growing community. Acting on its promise, it has the potential to become the next big mover in cryptocurrency.
For more on PrivaCrip (PRCR), check below:
Cardano (ADA) Withdrawal Fees Waved by Bitrue Exchange
Singapore-based cryptocurrency exchange made Cardano one of its base trading pairs earlier this year
Singapore-based cryptocurrency exchange Bitrue announced that it had temporarily waived withdrawal fees for the Cardano (ADA) cryptocurrency.
The trading platform says that the move is meant to celebrate the support it received from the community behind the cryptocurrency.
Users will be able to withdraw ADA without paying any fees until mid-September.
Bitrue has stressed that it wants users to have “as much choice as possible” when it comes to custody options. Those who want to hold their ADA tokens will not be able to do so without paying an additional commission.
At the same time, Bitrue has touted its “Power Piggy” yield-farm investment program for those who want to earn passive income with ADA.
As reported by U.Today, Bitrue introduced the token as its base currency back in February.
In June 2021, it also became the first cryptocurrency trading platform to add support for Cardano-based native tokens.
Last month, Bitrue also announced a staking initiative with the ADA cryptocurrency. It decided to contribute a million tokens to some of the top Cardano staking pools in an effort to boost the level of decentralization.
Earlier this year, SundaeSwap (SUNDAE), the native token of the SundaeSwap exchange, also became available on Bitrue.
WingRiders Losses 59% Of Its Total Value Locked, Plunges Cardano TVL Below $100M
Popular Cardano-based decentralized exchange WingRiders has lost its position as the most valuable DEX on Cardano.
WingRiders slumped from the first position to third after losing more than 59% of the total value locked (TVL) on the platform in the past 30 days.
At the time of writing this line, WingRiders is now the third-largest DEX by total value locked, with a TVL of $19.66 million. It is noteworthy that WingRiders maintained the top spot for more than two months, claiming 42% of TVL On Cardano. However, the DEX has fallen from glory ever since.
Minswap Is Now Cardano’s Most Valuable DEX
The development also affected the total value locked on Cardano. The total value locked on Cardano has fallen below $100 million in the last 30 days after the WingRiders TVL slumped.
Interestingly, Minswap has taken the lead to become the most valuable decentralized exchange on Cardano after the massive decline of WingRiders’ TVL.
At press time, Minswap is leading, with a $49.09 million total value locked on the platform. The DEX hit the milestone after recording a massive growth of 30.9% in its TVL in the past 30 days. Minswap accounts for 51.82% of the total value locked on Cardano.
SundaeSwap, the first decentralized exchange on Cardano, is now the second most valuable DEX in the ecosystem. SundaeSwap is second in the ranking, with $19.72 million in TVL.
Like WingRiders, SundaeSwap has also lost a significant amount of its TVL over the past 30 days. In the past month, SundaeSwap has lost nearly 10% of the funds locked on the platform.
Commenting on the development, Cardano Daily, a platform that shares new developments about Cardano, said:
“After the major decline of @wingriderscom, the TVL scenario of the Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem.”
CARDANO TVL STATUS
After the major decline of @wingriderscom, the TVL scenario of the @Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem#tvl #cardano $ADA pic.twitter.com/xjZ6cHo8jX
— Cardano Daily (@cardano_daily) August 9, 2022
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